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Relinquishment
Editorial…
Kaieteur News – The recent history of ExxonMobil in Guyana is that it has been given the right to get away with anything that it wants. It seeks, possibly demands behind closed doors what is favourable to its interests, and gets it. Guyana gets nothing in return for its helpful attitudes and responses to what is high on its oil partner’s agenda.
A partnership should be a two-way street, but in the Guyana-ExxonMobil relationship, it has been a one-way street with ExxonMobil in total control. Relinquishment of 20% of the Stabroek Block stands as a case in point.
The 2016 Production Sharing Agreement (PSA) is specific: four years for prospecting and two three-year extensions, should such be requested by the company and agreed to by the Guyana Government. The relinquished portion of the vast 6.6-million-acre Stabroek Basin would represent 600 oil blocks. These could then be auctioned to other oil companies or oil prospectors longing to get a toehold in this country’s potential offshore areas. Without one barrel of oil found or produced, Guyana could rake in US millions from a competitive auction. For reasons known only to itself, the previous APNU+AFC Coalition Government approved a one-year extension for blocks that were set to be relinquished.
The COVID-19 pandemic and its impact on ExxonMobil’s operations were advanced by the company and approved by the then Guyana Government. Guyana got nothing in return for its generosity, and despite the public knowledge that the virus had less than a significant impact on ExxonMobil’s oil operations. The consortium had kept going, with exemptions on restrictions, and its offshore activities still humming. The Coalition still approved a 1-year extension, with conditions attached, which few Guyanese know if they were honoured. The PPP-C Government returned to office and continued what the Coalition had started, only with secrecy taking over.
Today, almost at the end of October 2024, the equivalent of 600 oil blocks should be handed back to Guyana (relinquished) but mystery prevails. When Guyanese need the truth and substance of what is going to happen with the 20% of the Stabroek Basin that should be relinquished, ExxonMobil’s Guyana President, Alistair Routledge is closemouthed, which is the first worrying indicator. The second is that Guyana’s oil chief, Vice President Jagdeo is less than forthcoming, not his usual loud and aggressive self. It is fair to ask, given the closeness to relinquishment of the oil blocks, what is in motion? What could ExxonMobil’s Routledge and Guyana’s Jagdeo have up their sleeves? What scheme is being worked out to the detriment of Guyana? Either one of them should have been able to say with authority that 20% of the Stabroek acreage (600 oil blocks) to be relinquished is on track and will happen on the due date. With the matter of mere days left for relinquishment, both Routledge and Jagdeo should be on the same page in publicly asserting that this relinquishment will be, according to the contract terms.
We will be blunt: almost everything with this oil that involves some input from ExxonMobil, Guyana has come out the loser. Also, with Jagdeo’s powerful presence in the nation’s oil sector, Guyana has bowed to ExxonMobil’s dictates, even where there has been a steep cost to this country. So, when Routledge is tightlipped and Jagdeo shuts up shop on this relinquishment issue, this cannot be good for Guyana. What Guyana will get for its 20% relinquishment is being watched like a hawk. We shall know soon enough, what form this looming relinquishment takes, what sweet catch there may be for ExxonMobil. Guyana has been burned too often, with the Coalition contributing its share and the PPP-C Government shamelessly and slavishly outdoing it. When former president David Granger had ExxonMobil in the palm of his hand (COVID-19 related extension), he did not close it tightly around the company’s neck, like it has repeatedly done to Guyana. He shook the hand of this company that has slapped and punched Guyanese silly at every opportunity. When ExxonMobil is generous to Guyana, then Guyana can be helpful to ExxonMobil’s priorities. Jagdeo now has ExxonMobil in his hands with this relinquishment pending. His hands have been feeble, failing Guyanese every time. The contract terms must prevail.
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